N7 FHA, VA, Conventional Loans

Question 1

FHA stands for __________.

Answer 1

Federal Housing Administration

Question 2

In an FHA loan, the lender is ________ against loss.

Answer 2

Insured

Question 3

The FHA is regulated by:

Answer 3

HUD, the department of Housing and Urban Development

Question 4

A borrower on an FHA loan pays an ________ to insure the lender against loss.

Answer 4

Mortgage Insurance Premium, MIP

Question 5

An FHA appraisal is also known as a ________.

Answer 5

Conditional Commitment

Question 6

FHA escape clause or FHA Amendatory Clause

Answer 6

The requirement for an FHA loan stating that unless the appraisal is equal to or greater than the sale price, the buyer may withdraw from the agreement.

Question 7

FHA Loans are for _____to ______ family units.

Answer 7

1 to 4 family units

Question 8

FHA Loans are for ____ occupied properties.

Answer 8

Owner

Question 9

Do FHA Loans have prepayment penalties?

Answer 9

NO

Question 10

The VA stands for _______.

Answer 10

the Department of Veteran Affairs

Question 11

In a VA loan the lender is ______ against loss.

Answer 11

guaranteed

Question 12

Certificate of Eligibility

Answer 12

The document issued by the VA stating that the veteran qualifies and the amount of the veteran’s guarantee or entitlement.

Question 13

When a VA loan is paid off, the veteran’s eligibility is _____.

Answer 13

restored

Question 14

VA Funding Fee

Answer 14

The Veteran pays this at the time of loan origination.

Question 15

Certificate of Reasonable Value, CRV

Answer 15

Name for a VA Appraisal

Question 16

The typical amount of down payment in a VA Loan.

Answer 16

0%, Zero Down, $0, Nothing, Nada, Zilch, Jack Shit.

Question 17

The typical Loan To Value (LTV) in a VA Loan.

Answer 17

100%

Question 18

VA Loans are for _____ ______ properties.

Answer 18

Owner Occupied

Question 19

Do VA Loans have a prepayment penalty?

Answer 19

NO

Question 20

A loan with no FHA insurance or a VA guarantee.

Answer 20

Conventional Loan

Question 21

An uninsured conventional loan typically requires the down payment to be ____ of the purchase price.

Answer 21

20%

Question 22

Loan Fraud

Answer 22

Making false statements to obtain a loan.

Question 23

Three Ways Loan Fraud can occur:
a. ______________

b. ______________
c. ______________

Answer 23

a. Falsifying income or assets 
b. Providing gift letters from a private party when it is actually a loan 
c. Causing a lender to incur a higher loss than would have occurred if the lender had known all facts relating to a short sale.

Question 24

In an uninsured conventional loan, the insurance premium is abbreviated _____ or ______.

Answer 24

MI or PMI ( They are abbreviations for: Mortgage Insurance or Private Mortgage Insurance)

Question 25

Discount Points

Answer 25

An amount charged by a lender to increase the lender’s yield and/or lower the borrower’s interest rate

Question 26

One discount point = ________

Answer 26

1% of the loan in dollars.

Question 27

Origination Fee

Answer 27

A charge made by the lender to offset the cost of originating the loan.

Question 28

What are Discount points always based on?

Answer 28

The amount of the Loan

Question 29

An Assumed Loan or Assumption

Answer 29

The buyer takes over payments and responsibility for a loan.

Question 30

The process of re-writing an existing loan, substituting a new borrower and releasing the former borrower from of liability.

Answer 30

Novation

Question 31

A document given by the lender to a buyer who is assuming an existing loan to verify the loan terms is a _____ AKA _____.

Answer 31

reduction certificate or assumption letter

Question 32

The Primary Market is where:

Answer 32

Loans are originated

Question 33

Secondary Market

Answer 33

Market place where loans are bought and sold

Question 34

Warehousing

Answer 34

Gathering loans together for sale in the secondary market

Question 35

The process of selling a loan to another lender.

Answer 35

Assignment.

Question 36

A document executed by a borrower to certify the terms of a loan when a loan is sold to another lender.

Answer 36

Estoppel Certificate

Question 37

Loan Servicer

Answer 37

A company to whom a borrower makes payments and who processes the payments on behalf of the owner.

Question 38

What is FNMA?

Answer 38

Federal National Mortgage Association

Question 39

What is FHLMC?

Answer 39

Freddie Mac or Federal Home Loan Mortgage Association

Question 40

What does Fannie Mae and Freddie Mac do?

Answer 40

The buy loans on the secondary market.

Question 41

Government National Mortgage Association

Answer 41

GNMA or Ginie Mae (guarantees the timely payment of principal and interest payments on residential mortgage-backed security (MBS) instruments to institutional investors worldwide)